How To Fill Option Form For Direct Credit Of Pension: Fill & Download for Free

Employees’ Pension Scheme (EPS)Employees’ Pension Scheme (EPS) of 1995 offers pension on disablement, widow pension, and pension for nominees. EPS program replaced the Family Pension Scheme (FPS) of 1971. When an employee joins an establishment covered under the Employees Provident Funds & Miscellaneous Provision Act, 1952 (s)he becomes a member of Employees Provident Fund Scheme (EPF), Employees’ Pension Scheme (EPS) 1995, Employees Deposit Linked Insurance Scheme (EDLIS ) , 1976 . The EPS act in pdf format can be read at EPFO’s EPS webpage or Employees’ Pension Scheme, 1995 (pdf) and FAQ on EPS at EPF webpage. It’s main features are:It is financed by diverting 8.33% of employer’s monthly contribution from the EPF. Monthly contribution to EPS is restricted to 8.33% of 6500 or Rs 541 p.m and after Oct 2014 Rs 1250 8.33% of 15,000. Government’s contribution of 1.16% of the worker’s monthly wages if salary less than Rs 6,500.Unlike the EPF contribution EPS part (8.33% out of 12% contribution from your employer or Rs 541 and after Oct 2014 Rs 1250 what ever is minimum) does NOT get any interest.The fraction of service for six months or more shall be treated as one year and the service less than six months shall be ignored. So 9 years and 6 months will be rounded upto 10 years.Lifelong pension is available to the member and upon his death members of the family are entitled for the pension.A employee can start receiving the pension under EPS only after rendering a minimum service of 10 years and attaining the age of 58/50 years.No pension is payable before the age of 50 years.Early pension can be claimed after 50 years but before the age of 58 years. But it is subject to discounting factor @ 4% (w.e.f. 26.09.2008) for every year falling short of 58 years. In case of death / disablement, the above restrictions doesn’t apply.The maximum Pension per month is subject to maximum of Rs 3,250 per month.Maximum service for the calculation of service is 35 years.No pensioner can receive more than one EPF Pension.Earlier there was a provision under EPS allowing commuting of one third of monthly pension by paying 100 times the original monthly pension. However, the amended scheme from 26 Sep’ 2008 doesn’t allow it anymore.Table below gives the rates of contribution of EPF, EPS, EDLI, Admin charges in India.The purpose of the scheme is to provide pension in following situations:Note: As per Updated document of EPS on 2008 eligible period of service has be changed to 10 years from 20 years. Hence Short service Pension which was Member has to render eligible service of 10 years and more but less than 20 years is no longer valid.Calculation of PensionFor a member who joined EPF before 15.11.1995 have 3 components in Pension calculation:(a)Past Service Benefit (b)Pensionable Service Benefit (c)Proportionate ReductionPast Service : means the period of service rendered by an existing member from the date of joining Employees’ Family Pension of 1971 till the 15th November, 1995.Pensionable service means period of service rendered from 16 Nov 1995.Proportionate reduction: if the past service is less than 24 years and past service benefit + Pensionable service pension is less than Rs.500.For those who joined after 15.11.1995 only Pensionable Service Benefit is applicablePension depends on your contribution to Pension Fund and your service. You may be drawing very high salary, but your contribution to Pension Fund will be only Rs. 541 and and after Oct 2014 Rs 1250 max. This is because, as per EPF scheme, employer has to remit 8.33% of actual salary or of Rs. 6500 or 15,000 whichever is minimum. If your contribution in terms of amount or number of years is less, your pension will be less. . Your company can contribute more with permission. EPF Goa has details on how to get more pension.Note: If no wage is earned for a certain period, that period is to be deducted from the service (as there will be no contribution to Pension Fund). Maximum pension is calculated as followsMr R.Kapoor started his job on 15th Nov 1995. He works for 35 years. His average salary=20,000/- per month but for pension service maximum salary considered is Rs 6,500. So Mr. Kapoor’s pension from 16.11.2025 will beRs (6500 X 35)/70 = Rs 3250/month.You may calculate your possible approx. pension amount by using Approximate Pension Calculator.WithdrawalIf total service of employee is less than 9.5 years, (s)he is not entitled for pension so he can apply for Withdrawal benefit i,e Pension Fund Money back. Once, the service period crosses 10 years, the money withdrawal option ceases you can only get Scheme Certificate which (s)he can use to get pension from the age of 50 years.Scheme CertificateIf total service of employee is more than 9.5 years and age of employee is less than 50 years of age, (s)he can only claim scheme certificate. (S)He can add services at different companies to calculate total service. (S)he can get pension from the age of 50 years on wards. If (s)he has scheme certificate for all services, he may apply directly at EPF which covers the area where bank (SBI, Canara,Syndicate,) is situated. He needs to fill Form 10-D, get form attested by that bank manager with photo and other required documents which is mentioned in the Form-10D itself.Withdrawal – Money backIf total service of employee is less than 9.5 years and age of employee is less than 50 years of age then only one can withdraw the EPS amount in cash. But unlike EPF which when you withdraw you always get 100% of your EPF part, for EPS withdrawal amount depends on depends on Average salary and total service, NOT related to actual Balance in Pension Fund. The withdrawal amount is governed by what is called Table ‘D’.Note that the table D is upto 9 yrs only, because if 10 yrs are crossed, then you are liable for pension.So if Ms. Priya Sharma’s monthly salary is Rs 40,000 per month but for purpose of pension only Rs 1250(earlier 541) p.m or Rs (15,000 earlier 6,500) annually is considered. If she withdraws after 3 years her annual pension will be= Proportion corresponding to 3 years of service from Table D * 6500= 3.10 * 6500 / 3.10 * 1250Claiming PensionFor pension, withdrawal benefit, scheme certificate etc. application should be through ex-employer. For pension, Form 10D(pdf format) is to be used. For withdrawal benefit & scheme certificate fill Form 10 C(pdf format) which is also available with the HR departmentIf you have scheme certificate for all of your service, you may apply directly at EPF which covers the area where your bank (SBI,Canara,Syndicate,….) is situated after attesting the filled up Form-10D by that bank manager with photo and other required documents which is mentioned in the Form-10D itself.FAQFrequently Asked Questions we came across.Q: I worked in a company for exactly 1 year(12 months) My Basic salary was 1,20,600 and deduction for PF from my salary was 1206 P/M. As I know equal deduction should be include by the employer. However I was told at the time of joining that the deduction of employer will also be deduct from your salary and It will be not displayed in your salary slip.The PF amount I received against the EPF A/C is 21518+6630=28148 i.e however less then the actual amount credited as a pf contribution including both employee and employer that should be 28948.Ans : Total amount in EPF will be your contribution (A), Employer’s contribution (B) and interest. In your case basic salary of Rs.1206/per month, PF and EPS contribution will as follows:A) Your 12 months PF contribution will be – Rs. 14472 (i.e. 1206 X 12)B) Employer’s 12 months PF contribution will be – Rs. 7980 (i.e. 665 X 12)C) Employer’s 12 months EPS contribution will be – Rs. 6492 (i.e. 541 X 12) or 15,000 (i.e 1250 *12) after Oct 2014In my opinion your credited EPS amount of Rs.6630 is correct, if your service is exact 1 year (i.e. 6500 X 1.02) Source: citehr query on EPF and EPS withdrawalQ: Employee is a member of Employees’ Pension Scheme. He/She has left employment at 48 yrs. of age and 8 yrs. of service. When shall he/she receive his/her pension?Ans: He/She can take either withdrawal benefit or can take scheme certificate so that the 8 years service can be added to any future service that he / she may put in, in any other covered establishment. By virtue of being a holder of a scheme certificate, if the member dies before 58 years widow / widower and children shall be entitled for pension.

Lets, go step by step:Why taxpayers are getting Notice u/s 143(1)(a)?The Section u/s 143(1)(a) existed earlier too but has not been used extensively by tax department. What has happened this time they are sending out notices even if there is slightest mismatch between Form 16, Form 16A and Form 26AS versus the return filed.Even for deductions u/s 80TTA which exempts interest income up to Rs 10,000 in savings bank account which mostly do no figure out in Form 16 are receiving notices. The problem is we still do NOT know what proof tax department would require for this exemption.All pensioners who do not have to submit their investment declaration u/s 80C too are receiving this notice.Other than that salaried employees who have not submitted their investment proofs or rent receipts to their employers and claimed such deductions at the time of filing the return are getting these notices.How to respond to Notice u/s 143(1)(a)?The notice mentions that you should respond to the same within 30 days of receiving it. Below list down the steps you should follow to respond to the notice.Step 1: Login to the efiling portal – e-Filing Home Page, Income Tax Department, Government of IndiaStep 2: Goto e- Proceeding > eAssessment menuFor some tax payers this section may show nothing even if they have received notice. This is because it takes 2 to 3 days for the details to appear.This is what is visible on clicking the above menu options.Step 3: Click on Prmia Facie Adjustment u/s 143(1)This will open the next screenStep 4: Choose “Submit” to Direct to the next pageStep 5: Choose to Agree or DisagreeIf you respond by choosing Disagree, an additional response table opens up at the bottom asking for more details.The Form for reply is shown below:Reason for Disagreement FormThe form has the following fields. Read carefully on what needs to be filled:TANEnter the TAN of the employer (available in the Form 16 or Form 26AS) for salary incomeIf you have income from interest etc, put TAN of bank/company (available in Form 16A or Form 26AS)Deduction made under sectionMention 80C (for investment in PPF, Tax Saving Fixed Deposit, etc),80CCD(1), 80CCD(2) or 80CCD(1B) for NPS as the case may be,80TTA for taking deduction of Rs 10,000 on interest from savings account10(13A) for HRA80D for medical insurance80E for education loan80G for donation made to charity/NGOs, etcAmount paid/credited by deductorPut the amount paid – you’ll get this from Form 16 or 26AS (shown below) for salaried and Form 16A or 26AS for interest income, etc.Nature of receipt as per the deductorThis would be any of five types of income defined by income Tax – salary (Pension is salary income), Business, Capital Gains, income from house and other income (includes interest income)Income/Gross Receipts as per the returnEnter the amount after taking on account the above deduction.So for the case above I would put Rs 4,36,160 (5,95,156 – 1,59,000) which was the income filed in actual tax returnHead of Income/Schedule under which reported in the returnThis should be same as “Nature of receipt as per the deductor” until you have put it differently in income tax return. For e.g. Pension income should be treated as salary income but someone unknowingly has put in other income. So in this case he has to fill “Other Income”ReasonThere are 10 reasons to choose from as shown below:Justification/RemarksBriefly state why your Allowance or deduction was not in Form 16. It could be “employer did not consider this deduction” or “investment was made after proof submission to employer” etc.And most important DO NOT forget to attach relevant documents.For 80C investments you can attach the investment proof.For HRA you can submit rent receipt, etc.Section 143(1) AcknowledgementAfter all the process is complete you get the following acknowledgement:Disclaimer: I am not a tax expert. You might want to consult a qualified tax consultant or CA for your specific case!Thanks

(The answer is written around the environmental factors of a middle income, developing country like Pakistan which has severe problems in providing public services to it’s citizens. Some of the ideas presented here may not be applicable to a wealthier, developed country like say Norway or something.)Using Smartphone apps to help provide public services in developing countries where the government is lacking.2 examples of this:An investment app that allows investors to invest money into students (in the form of tuition fees and student expenses) in exchange for a percentage of their earnings after they graduate and get jobs.A kind of “Investment security” like Mortgage securities but instead of mortgages, we have promising students instead. Technically speaking, such a system is already in place in the US with student loans. Student loan securities are investment options for investment firms on Wall street where they purchase student debt in order to make money off the repayments.The App idea sort of works like this:Students who are doing well in school but need money for college sign up on the app. They show which university programs they have been accepted into, what their high school grades and achievements are and what their future career plans are after college. Some might also choose to share what max amount of their earnings they are willing to share after they get jobs on graduation.Similarly, people looking to invest their savings or profits or money also sign up. They browse the student pools before them. Investor A decides to sink Rs. 10,000 into the kid going to engineering school for software engineering (Student A), Rs. 8,000 into the kid going to the top business school in the country and Rs.2,000 into another engineering student who is going to a low-medium ranked engineering program.What the investor has just done with Student A is that he’s paid Rs. 10,000 of the total tuition and student expense fee of the student (the student can set the student expense amount. So the total cost would be tuition fee total + student expense total for the duration of the program).The investor now asks for a % of the students monthly income. The student argues for 1%. They settle for 2%. The student finds 9 other investors from other sources to fill the rest of the tuition and student expense fee and manages to get his entire tuition covered from a variety of investors in exchange for 12.5% of his monthly income returned to his investors once he gets a job after college.Some investors are nervous. They want more assurances for return on their investments. The students sense this and decide to link up with other students on the app and they together form pools of students. For e.g. a pool of 10 Straight A students with top school admissions. Or a pool of 100 students with As and Bs and mid-high university ranked admissions. A mix between engineering, business, medical, arts etc. So that if a few students are unemployed or don’t get well paying job, the pool as a whole on the average pays off the investors.Similarly, the investors too can pool their resources using the app. Market demand and supply rates decide who pays how much and gets what in return.Example: A pool of 5 investors have a capital of Rs 50 lakh. They decide to invest in a student pool of 10 students who are all going to engineering schools. The student pool and the investor pool negotiate a rate of return of around 6% on all incomes of all the students. The pooling allows less financial burden on the investor and greater flexibility by allowing them to invest in a more diverse bunch of students. The student pool is also an attractive option for students as it ups their bargaining power as a pool and they have a lower risk assigned to them as a pool.The app is backed up by a number of mechanisms that provide security to both the investors and the students. Investors have the option to renegotiate their investment if students completely change their major or start having bad semesters. Students are also protected from investors completely withdrawing their money for no reason if the student is performing well as per agreed terms.Investors can get regular grade and transcript related reports of students to make sure they are on track. They can pay semester by semester or pay in full from the start (obviously most would prefer month by month but higher ranked students with exceptional grades and top school admissions can demand full in advance, especially as a pool).Legal apparatus and ID verification apparatus built into the app will also ensure that students cant just run away after they graduate. Legal bonds and documentation will be signed during the agreement process between students and investors to make the investments legall binding. Investors too cant harass or pressurize students outside the bounds and norms of what the app allows.Investors will have to risk their student investments not panning out in the form of students not landing good jobs and not being paid well which mean lower returns on their investment. Obviously, the legal apparatus would have to verify students aren’t lying about their payslips and earnings.There would be rewards too. You pick up a brilliant but undiscovered mathematical genius from Baluchistan and pay for his college in return for his monthly payments. The kid goes on to become a a young professor or highly paid researcher or financial analyst and you get high returns on your investment. This would be the ideal case of the app working: Kids with academic talent being put through college by private citizens and in return, the investors getting high returns.Issues with this idea:First off, easy student financing options always lead to a spike in tuition fees charged by colleges and universities. Once students and universities see students flush with cash and ready to spend money on degrees, the increased demand for education means a corresponding increase in tuition fees by colleges. Students who had financial resources and were willing to pay for college based on their parents savings and such might be priced out or forced to become part of the app’s process and it’s monthly payment to investor schemes.Secondly, in a weak law and order state like Pakistan, the App business would have to invest heavily in making sure their legal department is up to par. The biggest problem with programs like this is students absconding after getting their degrees. The legal department must be able to pursue cases such as these, sometimes even in foreign states. I should mention that people abscond on similar government programs all the time and rarely are they bought to justice. An honor system, public shaming system (lol) and others can also be considered.There is also the matter of moral principle: education is supposed to be a right enshrined in the constitution. Not something that must be bargained for. But this legal formality only applies to high school education and not college in our country. Still, i have qualms thinking about the close parallels with bonded slaves in our country. But this might be too extreme an example. If you can get a education you once couldn't afford and alleviate your lifestyle with a good job, monthly repayments that you can negotiate with investors are sometimes a price worth paying.Notes:The idea is important for Pakistan because we have a severe deficit in college aid and college financing for students, especially the ones from poor, public schools. Several students are left out of the academic pool simply because they cant pay college tuition. We have top scorers in school examinations selling vegetables from carts on the road side or cobbling shoes. A shocking and dismal failure on the part of the government which should be doing more to tap into their youth bulge.What’s even worse is that as a gross total, our education budget is approaching the same levels as our enormous defense budget but not showing results on the ground in terms of increased literacy rates. We have little to show for it due to gross mismanagement and misspending.Should we double the education budget, or seek 100pc literacy?The App cuts out this middle man waste and directly connects education investors with academic students lets some market based pricing principles determine the situation.The app does what other apps like Air BnB and Uber do. It takes out the large, organized businesses like hotels, hostels, cab companies etc and puts in place a Peer to Peer model which drastically reduces costs and puts flexibility into the system as well as a ground level, micromanaged view.Given how large our informal, undocumented sector of the economy is (nearly $83 billion USD undocumented) , with vast swathes of wealth being untaxed, unregistered and invisible to the government, the app would function as a way to channel some of this untapped and untaxed wealth into public sector services without requiring citizens to pay tax for those services (which they are loathe to do because of our governments perception as a corrupt entity). It helps solve some of our untapped uneducated youth bulge with a larger college aged population and also helps investors channel money to good potential sources of income.It’s also a far better way for one generation to pass on wealth to the next. Currently, older folk prefer to invest in real estate as a safe investment. Real estate doesn’t educate the populace or generate human resource needed for a knowledge based economy. You just end up with residential palaces cleaned by an army of under-aged servants, one of whom could be the next Einstein.Also, we have a cultural emphasis on the young caring for their elders. I feel like this App system could tap into that with the students willing to pay for the elderly who invested in their education using their savings and pensions, with an honors system. It’s a far more human face for students to care for than large banking firms and wealthy investors.Such a system is already in place in Pakistan with several large government and military organizations recruiting students on a “bond system” where they pay for student school fees in return for a period of service in said organization. This has permitted such organizations to rapidly expand their human resource pools with extremely talented individuals who would have otherwise been left working in low paid, uneducated roles. The wealthier kids capable of paying private tuition often want to go abroad or work in the better paying private sector within the cities. The bond or student investment programs allow military and government organizations to recruit academic high achievers who can then be posted on less desirable postings like in rural, remote areas or other jobs they cant find people willing to do. Improving public services in those remote areas and undesirable roles.I’m gonna tag Habib here because he’s written a lot about student loans etc and might have some insights into this process that i know little about.2. An App that connects “favors”.So here in Pakistan, whenever we need something done from a government organization, the first thing we ask isn’t “how is this done?”. The first thing we ask is: “Do i know anyone who works in this organization?”Need your drivers license made? “Who do i know in the traffic police”Need your bank related work done? “Who do i know in this bank?”The underlying theme here is that normal channels of government processing of citizens appeals are slow, cumbersome and opaque. Which is why citizens normally rely on contacts inside the department to get their case processesed or their file moved.The app would basically set up a social network of people in both the public and private sector who could exchange favors with each other to get their work done in a quicker more efficient manner.For example, Ali works in the Traffic police. He sets up his account as the Traffic police guy and opens himself up to requests for people requiring drivers licenses, traffic exam info or case processing in the traffic department.Ahmed sets himself up as a worker in the National Bank. He sets up his account as a favors guy in the National bank and assists citizens needing help with their bank accounts, bank statements and so on.Kasim sets himself up as a guy in a real estate property firm. He opens himself up as someone who gives favors and advice from his position.When Ahmed the banker needs his drivers license, he calls Ali in the traffic police. When Ali the traffic warden needs to know when a low priced plot is for sale, he asks Kasim and Kasim lets him know.People accumulate credits by giving favors (sort of like how Quora credits used to work once). By building up credits, you can then ask for favors in return. Obviously some people in key government offices like the Police etc will have very high credit from the start. Someone working as a field doctor in Balochistan might not.The app would cut down the work and time required by citizens by giving them a personalized, human contact to deal with who has more motivation than the normal government employee because he needs to earn his credits in order to be able to call in his own favors.Issues:The first and most obvious one: This is almost like a bribery ring. I’ll be the first one to admit it. If this app came out, it would probably get banned or heavily scrutinized at least. People without enough credit on the app might just straight up start offering cash and money to the contacts listed to get their favor done. Legalized bribery almost.People without the app or without credit would rightfully feel resentful why their toeing the line of due process and having their work done the correct way by following proper procedure are being jumped by people using the app.Some people would also want to know how privacy worked. I think most people would be open to using the app but would not want their personal info like name, cell and face made public. They would just want to be known as “the contact in the passport office” or something. Because obviously, you don’t want to be outed in the whole passport office as someone granting favors on the app. Or some might not care.It’s obviously a controversial attempt at solving the problem of slow, bureaucratic and cumbersome public service procedures. That goes without saying.Notes:And yet, it does have the option of alleviating the problems of lower-middle income class families who increasingly have access to smart phones and app services.The thing is, people in upper class families already do use such a favor system. It’s just embedded in their social networks, rather than on an app. The app is just opening up the playing field to others as well, people who didn’t go to private schools and pricey colleges and rubbed shoulders with the right people. Upper class folk benefit immensely from such a favor based patronage system, exchanging favors among each other that lead to increased access to public services.The app would most benefit lowly peons in government offices, clerks in public sector orgs and employees in private SMEs who can form their own networks of favors to get access to public services the same way higher ranked officers, wealthy business men and politicians do.ConclusionBoth of these ideas are fairly controversial, flawed and easily exploitable for the wrong purposes. Which is why i list them in the “craziest public policy ideas” and not the “well thought out public policy ideas”.None of them are new either and have been in place in some form or another across the globe.They can either be tweaked a little and put in place under strict supervision or we can do the most obvious thing: Actually improve government services.But in Pakistan, I have a dim view of the ability of our government to deliver such public services especially to lower-middle income families atleast in the immediate term.The apps are at most a stop gap measure. They are an informal system in place till we have an actual formal system in place. A way for people without access to much resources and contacts to get services from a dysfunctional, cash strapped and developing world government. It’s also a way for citizens to bypass some of the hurdles they face from their own personal situation and government restrictions and access public services directly.I am not comfortable with either of these ideas. In an ideal world, we would have excellent public transport and government managed temporary residences and wouldn’t need Air BnB and Uber. But we don’t. We live in a world of band-aid government.These are band-aid public policy ideas and hence fall under the “crazy” category.